Applied Materials, Inc. — Earnings Quality Grade B
AMAT · Technology
Generally healthy
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 67 days, change -4 days YoY
AR growth -0.9% vs revenue growth 4.4%
Revenue 4.4%, CFFO -8.3%. Cash follows revenue
Expense Quality
Inventory 9.1% vs COGS 2.0%. Normal
CapEx growth 89.9% is >2x revenue growth 4.4%
SG&A/Gross Profit = 12.8%, excellent (<30%)
Gross margin 48.7%, change +1.2pp. Stable
Cash Flow Quality
CFFO/NI = 1.14. Profits backed by cash
FCF $5.7B, FCF/NI = 0.81
Accruals ratio = -2.6%. Low accruals
Cash $8.6B covers debt $7.0B
Balance Sheet Health
Goodwill+Intangibles $3.9B = 19% of equity. Manageable
Debt/EBITDA = 0.7x. Healthy
Other assets grew 156.7% vs revenue 4.4%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -1% YoY. Normal
Manipulation Score
M-Score = -2.57 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08